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between all the connected companies, so across the PAYE schemes or can allocate the levy allowance against just one PAYE scheme. There is guidance provided on this subject on the GOV.UK website which can be found here: https://goo.gl/ttIjEy. Q: I am trying to establish whether an employee – the partner of the mother – is eligible to take shared parental leave (SPL) and shared parental pay (ShPP)? The situation is that the mother – who is not employed by us – has recently changed employers but will receive SMP from her previous employer and not from her current employer. A: From the information you have given, the partner will be entitled to ShPP if they have both given eight weeks’ notice to their employers. The mother will need to submit a written curtailment notice to her old employer who is liable to pay the SMP, to say that she wishes to curtail her SMP and then curtail her maternity leave in writing with her current employer. It would not be enough to just return to work as this would not technically end the maternity pay period (MPP). The partner will be entitled to ShPP as the MPP which applies to the mother is and continues to be reduced through curtailment of her maternity leave. Q: My client has a business where he is a locum doctor providing cover to both hospital trusts and general practice surgeries. He has become concerned that off-payroll working in the public sector may impact on him. If he cannot carry out work for the hospital trust he sends another locum and is responsible for paying the locum himself. Can you advise what he should do? A: As this is a complex area the client should use the recently provided check employment status for tax tool, which can be found on GOV.UK at https://goo.gl/ SJfIim, to determine his status and if the off-payroll-working rules apply to him. The recent changes mean that if the end user is in public sector, they will have to determine the employment status of the individual and decide if the IR35 ruling applies. The hospital trust may choose to use the tool and if they do HM Revenue & Customs will stand by the results; unless, that is, a compliance check finds the information provided is inaccurate.
Your client should answer the questions truthfully and accurately, thus allowing the online tool to assess their situation correctly. You can find more information on GOV. UK at https://goo.gl/DVSkcm. Q: My company pays a bonus twice a year. Should these bonus payments be included in the calculation for national minimum/living wage (NMW/NLW)? A: Most bonus payments will count towards the NMW/NLW, but their inclusion will depend on what the bonus payment is for. A Christmas bonus payment or discretionary bonus will count towards NMW/NLW, but an attendance bonus may be considered/classed as an allowance instead. However, you should carefully consider how this bonus is allocated toward the calculation of NMW/NLW in a pay reference period. If this is an annual bonus you would count one twelfth of it for the month it is paid towards that month’s calculation. Please refer to page 12 of the guidance on calculating NMW found at https://goo. gl/vSz3wC. Q: We have an employee who is due to take maternity leave very shortly who has another employment elsewhere and is also self-employed. She has failed the earnings test with us, so we are not able to pay SMP. Should we still provide a SMP1 form to her and can she claim maternity allowance (MA)? A: An individual can only receive SMP or MA and not both, so although she must be given a SMP1 form from her employment with your company, she may be able to receive SMP from the other employer she works for. If this is the case this would mean she would not be able to claim MA. The self-employment will not impact on the SMP at all. n
Call 0121 712 1000 to discuss your requirements or visit cipp.org.uk for more information.
cipp.org.uk @CIPP_UK
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Issue 30 | May 2017
| Professional in Payroll, Pensions and Reward |
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